Thursday, September 20, 2012

Haio- top-line dropped but bottom-line improved

Results Update

For QE31/7/2012, Haio's net profit increased by 12% q-o-q or 33% y-o-y to RM10.3 million while revenue was up 20% y-o-y but dropped by 12% q-o-q to RM61 million. All 3 divisions- MLM, Wholesale & Retails- suffered a q-o-q drop in revenue. Unlike the other 2 divisions, the wholesale division experienced increased pre-tax profit due to lower operating expenses and higher profit margin from sale of patented medicine products & duty-free items.

Table 1: Haio's last 8 quarterly results

Chart 1: Haio's last 30 quarterly results


Haio (closed at RM2.02 yesterday) is now trading at a PE of 11 times (based on last 4 quarters' EPS of 18.26 sen). At this PE multiple, Haio is deemed fully valued.

Technical Outlook

Haio will likely to continue to trade sideway between RM1.90 & RM2.10. Beyond that, it will encounter support at RM1.75 & resistance at RM2.35.

Chart 2: Haio's weekly chart as at Sept 19, 2012 (Source: Tradesignum)


Based on fully valuation & unexciting technical outlook, I would rate Haio a HOLD.

In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Haio.


Anonymous said...

Hi Alex

Based on Haio current price of 2.03, it still trade cum final dividend of 7sen TE, translate to like 1 year FD yield of 3.5%.

富升 said...

Sir, can teach me what is mean by
top-line, and bottom-line?

Thank you!